Why is September the worst month for stocks?

Many mutual fund companies end their fiscal year in September, and similar to how investors harvest investment losses in November and December, mutual fund companies purge their portfolios the same way in September.

Is September a bad month for stocks?

The bar chart shows monthly average performance from January 1970 through July 2025 for four equity indexes: the S&P 500 (U.S.), S&P/TSX (Canada), FTSE All-Share (UK), and Hang Seng (Hong Kong). December and January are historically the best months, and September is historically the worst month.

What are the two worst months in the stock market?

What month do stocks drop the most?

For years, people in the financial world have noticed something “off” about the stock market's behavior in September. Often referred to as the “September Effect,” this is when the stock market tends to perform worse in September compared to any other month of the year.

Is September a good month to trade?

September Is the Worst Month for Stocks: Over the last 75 years, the S&P 500 has posted an average return of -0.7% in September, making it the worst performing month for stocks.

Will the Stock Market CRASH in September?

Which months not to trade?

What is the hardest month to trade forex? In June, July and August, volatility slows down due to the summer season, making it a less popular time to trade forex. The reduced trading activity during summer results from the changing habits of large market movers.

Is September a good time to sell?

With that in mind, let's explore the reasons why selling in September is a great time. Buyers who start looking for a home in September are generally planning to be moved in by Christmas, particularly if they're looking to host family and friends in their new home.

What is the slowest month in the stock market?

Believe it or not, September is actually the weakest month of the year for stock performance. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq composite all offer their worst average return during this period, according to Dow Jones data.

When to sell a stock for profit?

Why is August bad for stocks?

August has historically been a tough month for U.S. stocks, especially growth names, and with inflationary concerns and dimming hopes on the Federal Reserve's interest-rate cuts taking center stage again, the market setup may look increasingly fragile.

Which month do stocks go up?

Stocks generally perform better between November and April than between May and October. Increased volatility on the third Friday of March, June, September, and December when options and futures expire.

What is the best day of the week to buy stocks?

Wednesday and Thursday, however, are more likely to see stock prices rise. In a bear market, some say the market is at its most volatile on Monday and Tuesday, when stocks tend to fall the most. In contrast, some say Thursday is a good day for selling because stocks tend to rise.

Do stocks dip in December?

Tax-loss harvesting: Investors sell poorly performing stocks in December to realize tax losses that can offset gains elsewhere in their portfolios. The selling depresses stock prices, which then recover in January as the selling pressure eases, thus creating an uptick in prices.

What time of the day are stocks the highest?

Best Times of the Day to Buy or Sell Stocks

Many professional traders focus on the opening period (9:30 a.m. to 10:30 a.m. ET), as it typically offers the most significant price moves in the shortest time.

Is October a good or bad month for stocks?

MarketWatch. "October Tends To Be a Positive Month for Stocks — Unless a Presidential Election Is Looming."

Why is May a bad month for stocks?

According to a study by LPL Financial, the May to October stretch has been a financial dead zone, delivering just 1.8% annual returns since 1950. Trading volumes typically dry up as traders go on vacation, and there's simply not enough buying demand to power stocks higher.

Can you make $1000 a month with stocks?

For a more hands-off approach, consider investing in a high-yield dividend exchange-traded fund (ETF) like the Nasdaq-100 High Income ETF (IQQQ), which has a current annual yield of 9.29%.1 With this ETF, you'd need to invest about $107,000 to generate $1,000 in monthly income ($12,000 annually).

Should I pull my money out of the stock market in 2025?

You can capture those returns and outperform more than 90 percent of investors over time by investing in an S&P 500 index fund — but you must stay invested. “Selling out of stocks or other assets held for long-term appreciation is often the wrong move,” says Grillo. “Periods of market volatility are inevitable.

Is it legal to buy and sell the same stock repeatedly?

Technically, there's no hard limit on how many times you can buy and sell the same stock in a single trading day. Again, there are caveats to consider here though. If you're buying and selling the same stock four times in one week, you'll need more than $25,000 in your account to avoid being classified as a PDT.

What is historically the worst month for stocks?

The bar chart shows monthly average performance from January 1970 through July 2025 for four equity indexes: the S&P 500 (U.S.), S&P/TSX (Canada), FTSE All-Share (UK), and Hang Seng (Hong Kong). December and January are historically the best months, and September is historically the worst month.

When to buy stocks and when to sell?

According to Warren Buffet , you should generally buy stocks that you plan to hold indefinitely; meaning they are value stocks of good companies. Then you only sell when either the company loses its underlying qualities that led you to buying them (metrics and management) or a better opportunity comes along.

What is the average monthly return on stocks?

Basic Info. S&P 500 Monthly Return is at 2.17%, compared to 4.96% last month and 1.13% last year. This is higher than the long term average of 0.60%. The S&P 500 Monthly Return is the investment return received each month, excluding dividends, when holding the S&P 500 index.

Is September a low sales month?

US retail sales dipped in September on a month-by-month comparison, however it is the time of year that is “historically soft for retail sales,” according to NRF president and CEO Matthew Shay. Clothing sales grew in September with a 1.06% month over month jump and 10.31% year-over-year jump, unadjusted.

What's the best month to sell?

The best month to sell a house has historically been May or even early spring around March. According to the most recent Zillow analysis of annual sales data from 2024, the best month to sell a home is now May.

What month has the highest sales?

Traditionally, the best retail sales by month include November and December, largely due to the holiday season. The period from Thanksgiving to New Year's Day witnesses a surge in consumer spending as individuals shop for gifts, decorations, and holiday-related items.